SHB.L Share News (SHB)

LONDON (Alliance News) - Metals and minerals producer Centamin is leading the FTSE 250 index Monday despite reporting a hit to pretax profit in 2013, due to a large exceptional cost, but a significant increase in revenue and production.

Centamin said pretax profit fell 7.4% to USD184.0 million in 2013 from USD198.6 million in 2012. Not including exceptional items, the company would have posted a pretax profit increase of 1.4% to USD235.0 million from USD231.7 million in 2012, it said.

Revenues for the year rose 18% to USD503.8 million as production increases offset lower gold prices during the period. Production increased by 36% to 356,943 ounces of gold from 262,828 ounces the previous year, significantly beating its full-year guidance of 320,000 ounces, as its Sukari Gold Mine in Egypt continued to ramp up operations.

Centamin shares are up 8.7% at midday. Just behind is fellow FTSE 250 stock Kentz Corp, whose shares are up 6.1%.

Kentz said pretax profit increased in 2013 driven by revenue growth at its Technical Support Services division during the period, and it forecast a strong 2014. The major oil and gas engineering company posted a 4.7% increase in pretax profit to USD109.7 million and revenue rose 6.4% to USD1.66 billion.

The company said revenue increased as growth in the Americas and Australasia offset lower revenue from its Middle East, Far East/Europe and Africa operations, and its Technical Support Services division increased revenues by 60% to USD654.1 million in 2013 from USD408.9 million in 2012.

Meanwhile, FTSE 250-listed electronics retailer Dixons Retail and mobile phone retailer Carphone Warehouse Group said the Takeover Panel deadline for its possible merger has been extended to May 19. Dixons shares are off 0.7%, while Carphone Warehouse shares are down 3.8%.

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FTSE 100: down 0.1% at 6,550.36
FTSE 250: down 0.4% at 16,096.8
AIM ALL-SHARE: Down 0.4% at 852.78
GBP-USD: up at 1.6494
EUR-USD: down at 1.3770
GOLD: down at USD1,315.32 an ounce
OIL (Brent): up at USD107.29 a barrel

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Key UK Corporate News

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FTSE 100: Oil and gas services provider Petrofac has won an engineering and procurement contract from Petroleum Development Oman to provide services for its Rabab Harweel Integrated Project in the Harweel Cluster of fields in the south of the Sultanate of Oman. WPP has acquired a majority stake in Cognifide, a digital technology consultancy in the UK, and its subsidiary has agreed to acquire a premium and gift specialist in China. Beverage can maker Rexam has a binding deal to sell the rest of its healthcare containers and closures unit to Berry Plastics Group for USD135 million in cash. Standard Life is in advanced talks over a potential deal to acquire Ignis Asset Management from FTSE 250-listed Phoenix Group, a move that would add substantially to its assets under management.

FTSE 250: Bovis Homes Group has signed contracts with two separate investors to sell new-build properties under two private rental sector transactions across a range of sites it already owns. Londonmetric Property has acquired the Oak Furniture Land Distribution Centre in South Marston Park, Swindon from property firm IM Properties in a deal worth GBP22 million, reflecting an initial yield of 6.5%. John Laing Infrastructure Fund said its annual pretax profit fell but it raised its full-year dividend by 4.1% to 6.375 pence regardless. Diploma said it had been hit hard by the recent rise in sterling as well as the fall in the Canadian and Australian dollar, meaning its key profit measure will only be flat this year. Satellite communications company Inmarsat has launched its new satellite phone. Real estate investment trust Shaftesbury has bought Jaeger House, 57 Broadwick Street, London for GBP30.75 million. Segro and Picton Property Income said they have completed an industrial property swap deal.

AIM: Shares in Ormonde Mining are trading higher after the tungsten mining exploration and development company said it has entered into a binding tungsten offtake agreement, from its Barruecopardo project in Spain, with Noble Resources International Pte. Plant Health Care is also trading higher. The agricultural biochemistry firm is a big winner despite saying that its losses widened in the 2013 full-year. At the other end of the market, Amur Minerals is trading lower. The nickel-copper sulphide mineral exploration-and-development company has seen its shares drop after it announced that it has completed construction of its 2014 winter ice road from the Baikal-Amur rail siding to its Kun-Manie project. Shares in IBEX Global Solutions have dropped after the contact centre and business outsourcing provider said its losses widened in the first-half of the year, despite significant revenue growth, and is now expecting earnings and revenues for the full-year to be below expectations due to investments. Allergy Therapeutics is down 12%, despite the group posting a rise in pretax profit in the half-year to the end of December. Shares in LED International Holdings are also trading lower. The provider of LED lighting in China reported a loss of HKD6.1 million for the six months to the end of December 2013 due to an unexplained big fall in "other income" in the profit and loss account. Ferrex is trading lower; the iron ore and manganese development company said it has agreed to issue GBP1.7 million worth of shares in order to continue the development of its African iron ore and manganese assets, as well as for working capital purposes.

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Top Economics And General

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The Russian Defence Ministry Sunday denied reports that Russia was amassing troops along the border with Ukraine. Deputy Defence Minister Anatoly Antonov called on the US in particular to look at the activities of Russian troops "objectively" and not to escalate an already tense situation, Interfax news agency reported. Russia was abiding by all international agreements, including an accord on the number of Russian troops on the Ukrainian border, Antonov said.
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Russian troops stormed a Ukrainian navy base in Crimea on Monday, days after Moscow formally annexed the peninsula, while the leaders of the Group of Seven industrialized nations were due to hold talks on the crisis. The Russian assault on the Feodosia base began at 0230 GMT, according to Vladislav Seleznev, the Ukrainian military spokesman on the peninsula, who was quoted by the Russian-language Centre for Investigative Journalism. The troops used stun grenades, and smoke was visible from one of the barracks, the centre reported. The Russian special forces had seized between 60 and 80 of the Ukrainian personnel on the base, according to Seleznev.
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Business sentiment among Chinese purchasing managers dropped to an eight-month in March, according to preliminary survey findings released Monday. The index by financial services company HSBC showed a reading of 48.1, down from 48.5 in February, and the lowest since the 47.7 recorded in July. A figure above 50 generally means a positive outlook in the manufacturing sector, while below 50 is taken as a negative reading.
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China should unlock the substantial growth potential in the service sector in order to boost employment, consumption and living standards, International Monetary Fund Managing Director Christine Lagarde said. Addressing an audience at the China Development Forum in the capital, Beijing, Lagarde noted that China's financial sector is a potential source of higher-quality growth and improved welfare.
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China's vice finance minister Zhu Guangyao said the first interest rate hike by the Federal Reserve six months after the end of quantitative easing would have a substantial impact on the global economy. "If interest rates rise six months after the QE exit, the impact on the US economy and the rest of the world would be substantial," Zhu said at the weekend. He expects the Fed to complete its exit from quantitative easing this October. Zhu observed signs of recovery in Europe but warned that structural reforms have been insufficient.
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A Chinese plane hunting for wreckage of a missing Malaysian passenger jet spotted unidentified "objects" Monday in an area of the southern Indian Ocean determined to be the most likely location for debris from flight MH370. Ten aircraft are patrolling a 59,000-square-kilometre patch of sea between Australia and Antarctica.
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The euro area private economy maintained its growth momentum in March, with activity expanding for the ninth consecutive month, preliminary survey data from Markit Economics showed Monday.
The flash composite output index came in at 53.2 in March. The above 50 score signals expansion. However, the score was slightly lower than February's 32-month high of 53.3.
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France's extreme right National Front party and the conservative opposition saw their fortunes increase in a number of cities in the first round of two-stage municipal elections on Sunday. The results were seen as a referendum on the leadership of Socialist President Francois Hollande in his first test at the polling booth since taking office nearly two years ago. France's lagging economy and record unemployment pose a major challenge for Hollande's party.
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Turkey shot down a Syrian jet Sunday near their common border, both governments said. Turkish Prime Minister Recep Tayyip Erdogan said the fighter jet was downed after it had violated Turkish airspace while a Syrian military source quoted by Syria's official SANA news agency said the jet was shot down while it was chasing rebels inside Syrian territory. The Syrian official called the incident a "blatant aggression" carried out by Turkish air defences to support rebel groups inside Syria.
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An Egyptian court sentenced to death 528 supporters of toppled president Mohammed Morsi, state media reported. They were found guilty of rioting and attacking police facilities in the southern city of Minya in August, state television said. Judge Saeed Youssef acquitted 17 defendants. All defendants have the right to appeal.
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Anti-government protesters returned to the streets of Bangkok Monday, calling for renewed efforts to bring down the caretaker government of Thai Prime Minister Yingluck Shinawatra. People's Democratic Reform Committee head Suthep Thaugsuban, who has led a series of mass demonstrations since November, including the occupation of some of the city's main intersections, led the march from the group's main rally site in a park in central Bangkok.
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Afternoon Watchlist

13:58 US Markit Manufacturing PMI Preliminary

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Tuesday's Key UK Corporate Events

888 Holdings Full Year Results
Carnival Q1 Results
Nanoco Group Full Year Results
AG Barr Full Year Results
Acencia Debt Strategies Full Year Results
Kingfisher Group Full Year Results
S&U Full Year Results
Wolseley Full Year Results
Accesso Technology Group Full Year Results
Topps Tiles Trading Statement
Polyus Gold International Full Year Results
Easyjet Trading Statement
Ubisense Full Year Results
Augean Full Year Results
Epistem Half Year Results
Faroe Petroleum Full Year Results
Sinclair Is Pharma Half Year Results

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Tuesday's Key Economic Events

02:00 China CB Leading Economic Index
09:00 Germany IFO
09:30 UK BBA Mortgage Approvals
09:30 UK Core Consumer Price Index
09:30 UK Consumer Price Index
09:30 UK DCLG House Price Index
09:30 UK PPI Core Output
09:30 UK Producer Price Index
09:30 UK Retail Price Index
11:00 UK CBI Distributive Trades Survey
13:00 US Housing Price Index
13:00 US S&P/Case-Shiller Home Price Indices
14:00 US Consumer Confidence
14:00 US New Home Sales
14:00 US Richmond Fed Manufacturing Index
20:00 US Fed's Lockhart speech
23:00 US Philadelphia Fed's Plosser speech
23:50 Japan Corporate Service Price

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By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance

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